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Definition of 'Stockbroker'

A stockbroker is a person who buys and sells stocks on behalf of clients. They are also known as stock traders or investment advisors. Stockbrokers work for brokerage firms, which are financial institutions that facilitate the buying and selling of stocks.

Stockbrokers typically have a college degree in finance or a related field. They also must pass a series of exams to become licensed by the Financial Industry Regulatory Authority (FINRA).

Stockbrokers earn a commission on the trades they make for their clients. The commission is typically a percentage of the total value of the trade.

Stockbrokers can be helpful for investors who do not have the time or expertise to trade stocks on their own. They can also help investors to diversify their portfolios and to make informed investment decisions.

However, it is important to note that stockbrokers are not fiduciaries. This means that they are not legally obligated to act in the best interests of their clients. As a result, investors should carefully research any stockbroker before hiring them.

Here are some of the things to consider when choosing a stockbroker:

* The broker's experience and qualifications.
* The broker's fees and commissions.
* The broker's investment philosophy.
* The broker's customer service.

It is also important to remember that stockbrokers are not always right. They make mistakes just like everyone else. As a result, investors should always do their own research before making any investment decisions.

If you are considering hiring a stockbroker, be sure to do your homework and choose a broker who you feel comfortable with. A good stockbroker can be a valuable asset to your investment portfolio.

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